Your employer has offered to contribute $50 a week to your retirement savings account. Assume you work for this employer for another 15 years and earn an average return of 8.5 percent, compounded weekly, on your savings. What is this offer worth to you today? O A) $39,000 OB) $42,315 Oc) $22,032 OD) $81,309
Your employer has offered to contribute $50 a week to your retirement savings account. Assume you work for this employer for another 15 years and earn an average return of 8.5 percent, compounded weekly, on your savings. What is this offer worth to you today? O A) $39,000 OB) $42,315 Oc) $22,032 OD) $81,309
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
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Step 1
Number of weeks (n) = 15 years x 52 weeks = 780
Weekly interest rate (i) = 8.5%/52 = 0.16346153846% = 0.0016346153846
Payments = 50
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